About This Report

The report below is a dated example (February 23, 2026) generated using macroeconomic and on-chain data available at that time.

It does not reflect current market conditions.

Its purpose is to demonstrate how the Reading Bitcoin framework structures analysis when paired with properly formatted AI prompts.

The Market State classification shown reflects the structural inputs present on that specific date.

This example illustrates the method and analytical discipline — not the underlying prompt architecture.

It is not a live update.

📊 Market State Update (Reading Bitcoin Framework – Structural Only) - February 23, 2026

1️⃣ Liquidity Assessment

System liquidity remains structurally elevated but is not meaningfully expanding. Current conditions reflect the residual effects of prior accommodation rather than fresh injection.

Rate-structure dynamics suggest normalization rather than a new easing cycle.

Treasury cash positioning appears volatile but does not presently indicate material system-wide liquidity withdrawal.

Currency strength is moderating and broader financial conditions remain accommodative.

Liquidity Regime: Neutral to Mildly Accommodative (not expanding, not contracting).

Liquidity Regime: Neutral to Mildly Accommodative (not expanding, not contracting).

2️⃣ Supply & Ownership Assessment

Exchange reserves are flat-to-declining. Netflows are negative (coins leaving exchanges), reducing immediate sellable supply.

Open Interest is falling and funding has compressed sharply, indicating leverage heat is being removed rather than added.

No visible evidence of LTH stress in the data provided.

Whale ratio elevated but without accompanying exchange inflow spike.

Sellable Supply: Shrinking to Stable.
Ownership Behavior: Constructive / Conviction Intact.

3️⃣ Pressure Diagnosis

There is no evidence of forced distribution.

Leverage compression combined with exchange outflows suggests pressure is not being released aggressively.

Given neutral liquidity and shrinking exchange supply, structural pressure appears to be quietly rebuilding rather than resolving.

Pressure Status: Gradually Accumulating (not releasing).

4️⃣ Market State Classification

Compression

Liquidity is not expanding.
Sellable supply is not expanding.
Leverage is cooling.
Ownership remains firm.

This combination produces structural compression — tightening coils without broad macro acceleration.

This is not Expansion.
This is not Distribution.
This is not Accumulation in the early-cycle sense.

This is late-stage structural tightening under neutral liquidity.

5️⃣ Risk Factors to Monitor

Market State would shift if:

• Exchange reserves begin rising persistently.

• Netflows flip positive (sustained inflows).

• Open Interest expands with rising funding.

• DXY reverses sharply higher.

• ANFCI tightens materially above zero.

• Fed balance sheet begins sustained contraction.

Note on Price vs. Market State

This report was compiled on a day when Bitcoin declined approximately $4,000 (from $68,000 to $64,000).

Short-term price movement and Market State classification can diverge.

Market State evaluates structural conditions — liquidity, supply behavior, ownership posture, and pressure dynamics — not daily liquidity.

Price can move quickly.
Structure changes more slowly.

Understanding that distinction is central to the Reading Bitcoin framework.

Generating Market State Reports On Demand

Students are not given reports.
They are trained to generate them on demand using their own LLM partner.

Inside the Structured Framing Session — the course — participants learn how to produce a Market State report like this on demand — using consistent inputs, disciplined framing, and a structured prompt process.

When volatility rises, they don’t look for reassurance.
They produce clarity.